Bitcoin spoofs $39.5K breakout at Wall St open as Elon Musk Twitter takeover nears

Bitcoin spoofs $39.5K breakout at Wall St open as Elon Musk Twitter takeover nears

Bitcoin (BTC) saw a classic “fake” move on April 25 as volatility kept traders firmly on the edge.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

Traders pessimistic about BTC outlook

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD climbed nearly $1,000 at one point as Wall Street’s trading session began on April 25.

The move was short-lived, with the pair returning to its starting point within an hour of Bitstamp hitting a local high of $39,517.

April 25 began with a whimper from Bitcoin bulls, who lost ground on the weekly close, failing to avoid $40,000 turning into resistance on the daily time frame.


$30,000 remains a potential short-term target for popular trader Crypto Ed.

“Any bounce we see in the next few days seems to be a short-lived bounce to me,” he said in his latest YouTube update, predicting a “red week.”

Crypto Ed added that a move above $40,500 would provide a “slightly bullish” case.

Downward momentum has picked up after Asian stocks fell sharply on concerns over the coronavirus in China. European markets opened better, while in the US, the Nasdaq 100 even started to rise in the second hour of trading.

At the time of writing, the S&P 500 is still down 0.43%, but is still trying to make up lost ground.

Meanwhile, popular Twitter account John Wick expressed caution about making any trades up or down based on current price action.

“Waiting is a good decision. Still no viable long-term setup. We haven’t made lower lows yet. Same range at the moment,” he told followers that day.

“However, a squeeze is forming. We will have to wait for the breakout to resolve.”

BTC/USD annotated chart.Source: John Wick/Twitter

Dogecoin is an early winner of Musk’s Twitter deal

Helping tech stocks out of their wobbly position was Twitter itself, which opened 5% higher on news that executives may accept Elon Musk’s takeover offer.

Related: ‘It definitely feels like it’s going to crash’ – 5 things you need to know about Bitcoin this week

After previous objections, Twitter’s board is likely to agree to the deal, which would see Musk buy the company for $43.4 billion later on April 25. That equates to $54.20 per share, compared to the current spot price of $50.36.

“I think there’s a lot of frustration going around the world right now, and you can see that on Twitter; it shows that,” MicroStrategy CEO Michael Thaler told Bloomberg.

“It’s a little bit higher than my pay grade to decide how the whole chapter ends; it’s definitely fun to watch.”

He added that he “wouldn’t mind” if Musk owned Twitter.

Musk is known for his love of Dogecoin (DOGE) and his criticism of Bitcoin’s alleged environmental issues, a sentiment that contrasts with that of former CEO Jack Dorsey.

Saylor said he has not spoken to Dorsey about the acquisition.

At the time of writing, DOGE/USD is up 5% on the day, making it the best mover among the top 20 cryptocurrencies by market cap.

DOGE/USD 1-hour candle (Binance). Source: TradingView

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Every investment and trading move involves risk and you should do your own research when making a decision.

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